House Bill 1496, if passed, could bring a new twist to the old workings of eminent domain. Most operators have probably come across that one local municipality that is such a pain to deal with, due to regulations and restrictions imposed upon drilling activities, that the better option seems to be avoidance of such an […]
On Being Accommodating
The accommodation doctrine could draw a further opinion from the Texas Supreme Court The Texas Supreme Court heard argument recently on an important case for both landowners and operators: Merriman v. XTO Energy. Although I wrote about this case several months ago, a revisit is prudent. To refresh memories, the Texas Supreme Court was asked […]
From the General Counsel: The Overriding Royalty Interest
Overriding royalty interests (“ORRIs”) and the way they are treated by both Lessees and case law have been a cause for some contention in Texas. As many are aware, ORRIs terminate when the lease terminates. This allows a calculating Lessee to choose to let a lease terminate, and take a new lease without the ORRI […]
From the General Counsel: NPRI Owners and Their Interests
The Non-Participating Royalty Interest Owner has been known to make things interesting for operators when the former has not fully been taken into account. Operators of oil and gas lands can potentially tread some dangerous water when it comes to the payment of royalties to all interest owners. Typically, operators have Drilling Title Opinions drafted […]
From the General Counsel: No Going Back
The backdating of pooling agreements is not permissible, per the Texas Supreme Court. The Texas Supreme Court recently provided guidance on the practice of backdated pooling agreements when it denied review of a memorandum decision issued in June 2012 by the Eleventh Court of Appeals. Eddie E. Godfrey, individually, and Eddie E. Godfrey and Jay […]
From the General Counsel
When JOA’s Pass to Subsequent Purchasers The Joint Operating Agreement—not always the simplest contract to interpret—can spawn additional issues when “heirs, successors, and assigns” enter the picture. In late June of this year, TransTexas Gas Corp. (Sandridge Onshore, LLC, is now TransTexas’ successor in interest) filed a petition for review in the Texas Supreme […]
From the General Counsel
JOAs and Liability In April of this year, I wrote about a case that was currently before the Texas Supreme Court titled “Wendell Reeder v. Wood County Energy, LLC, et al.” In that case, the operator, Reeder, argued that the 1989 Model Form Joint Operating Agreement’s exculpatory clause prevented him from being held liable for […]
From the General Counsel
It Pays to Look Closely Property owners—or prospective owners—take heed: just because your county’s records do not show a lease as binding on your property does not mean that such a filing does not exist in an adjacent county. A not-often-relied-upon property code provision recently became the bane of one surface owner’s use of its […]
From the General Counsel
Accommodating the Accommodation Doctrine How the surface estate may be used—more specifically, whether a surface owner is incommoded by a mineral owner’s uses of that surface estate—is a question that the Texas Supreme Court is being called upon to answer. Recently the Texas Supreme Court was asked to clarify what a surface owner is required […]
From the General Counsel
In New Mexico, the Court of Appeals rules on whether oil and gas producers can waive their obligation to pay interest on proceeds held up by delays in distribution. The New Mexico Court of Appeals was recently called upon to determine whether a contractual agreement to waive interest on proceeds owed to mineral owners was […]